Trinidad registered Company, Commissiong and Company Limited (CCL) has filed a lawsuit against the Guyana Oil Company (GUYOIL) in which it is seeking in excess of $23M in damages as it is claiming the State-owned oil company has failed to pay it for works done at its terminal at Providence, East Bank Demerara.
In an action filed by Attorney-at-Law, Anil Nandlall, CCL is suing for US$291, 055, monies owed by GUYOIL for works done on May 24, 2019 for the fabrication and erection of two 10,000 barrel storage tanks at the aforesaid address.
The company is also seeking in excess of $23M in damages for breach of contract; general damages; punitive damages; interest; costs and any such or further orders as the court deems just.
According to a Statement of Claim filed by CCL, sometime in February 2019, an Invitation to Bid to supply, fabricate and erect two 10,000 barrels storage tanks at GUYOIL was advertised.
The company said that one of its agents visited the site and was assured by a representative of GUYOIL that international and or foreign bonds would be accepted, since most contractors equipped to undertake the scope of works are not locally based.
It said that it submitted a bid for the contract and on April 25, 2019, a letter of acceptance by the company’s Secretary/Legal Officer was issued to them for the execution of the works.
The contract price was $110, 285,918 with it being executed within eight months, CCL said, adding that it had to furnish GUYOIL with a security bond of $3,308,577 within 15 days via a bank draft.
The company said it also provided a performance bond of US$15, 857 on April 30, 2019. After the contract for the above was entered into, CCL disclosed that GUYOIL requested of the company to erect a third storage tank for which quotations were sent on July 5, 2019.
A few days later, drawings for the supply, fabrication and erection for two 10,000 barrel storage tanks were emailed to representatives of GUYOIL.
According to the Trinidad Company, on July 17, 2019, it submitted to GUYOIL US$16, 542,886, being an advanced payment for the fabrication and erections of the two 10,000 barrel storage tanks as well as an advance payment guarantee dated June 11, 2019 by Furness Anchorage General Insurance Limited.
On July 17, 2019, the company said that a GUYOIL staff called its Director and stated as follow: “That in order for the advance payment to be made, CCL would be required to pay her 20% of the value of the three projects.
According to Nandlall, CCL’s Director indicated that this would not be possible as the company’s profit margin is only 10%.
“The person identifying herself as a GUYOIL official then informed the Director of [CCL] that “the payment was not for her but for the Minister of…,” Nandlall disclosed.
Further, Nandlall said on July 18, 2019, he received a phone call from GUYOIL’s representative who indicated that he was informed by the oil company’s CEO that the advance payment guarantee submitted by the CCL would be rejected and it must submit local bonds.
CCL added that GUYOIL eventually terminated the three contracts which breached certain clauses of the agreement they entered into.
According to CCL, pursuant to clause 60.2 of the said Agreement, where a party terminates the Agreement for convenience, the party who elects to terminate must pay to the supplier, the value for the works done as at the date of termination on the production of a Certificate of Value for the works done.
